January 10, 2012 / Featured Properties, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
With property values as low as they are, many prospective Jacksonville real estate buyers are seeking investment properties to lease for profit. But leasing a home can be an overwhelming process for property owners. Experts warn that owners should be extremely selective in placing tenants in their properties, emphasizing the need for thorough background checks and careful consideration of each candidate. It is a large commitment of time and hard work to properly list and fill homes for rent in Jacksonville, but failing to do so could land you with deadbeat tenants and costly eviction procedures.
Listing and filling Jacksonville homes for rent can be a much more pleasant experience with help from Traditions Realty. Traditions offers a full range of services for property owners, including tenant placement, property management, property value determination, and availability to show properties 7 days a week. Traditions can also assist you in purchasing investment properties. We have expertise in all areas of Jacksonville real estate, whether you are looking to buy, sell, or rent.
Thinking about becoming a landlord? You should know this
JUPITER, Fla. – Dec. 6, 2011 – With real estate prices low, many people are considering buying an investment property and becoming a landlord.
It might sound simple, but real estate pros warn that there’s a lot to know. The landlord who doesn’t follow such basic guidelines as conducting a thorough background check can get stuck with a nightmare tenant. It takes both business sense and common sense.
“Most of my tenants, 98 percent, are terrific,” said Jupiter real estate broker and investor Carl Presto, who owns 60 properties. “The problem is that 2 percent.”
The down economy that has resulted in real estate bargains also means it’s more difficult to find a tenant who can afford to pay first and last month’s rent and a security deposit upfront. Landlords report they have to go through 30 to 40 applicants before finding a qualified tenant.
Landlords also find they are competing with foreclosed houses, which some people rent below market, forcing rents lower.
Although picking up a cheap condominium unit might be tempting, David Dweck, founder and president of the Boca Real Estate Investment Club and a real estate broker and investor, advises avoiding them. Instead, buy a duplex, triplex, small apartment building or single-family home where you won’t be subject to a condominium board, he suggested.
Special assessments levied by condo associations can run into thousands of dollars.
Presto agrees: “Pay cash and buy a duplex. Offset your rent. Rent one side, and live in the other.”
Financing is also difficult. Douglas Rill, a West Palm Beach real estate broker who has been a landlord for 38 years, said about 70 percent of investment properties are cash deals.
Whatever the property, Dweck, Presto, Rill and other experts say finding a decent tenant starts with the screening process.
Credit checks and criminal background checks are a must. Small-scale landlords can find help at websites such as www.mysmartmove.com. Operated by Trans-Union, a major credit bureau, SmartMove gives independent rental owners access to the same tenant screening used by large property management groups. It also gives renters data privacy because they provide their identifying information directly to TransUnion in a secure, online setting.
For $25 the landlord receives a credit-based leasing recommendation, national criminal report including 50 state sex-offender and terrorist searches, renter fraud warnings and automated renter identity verification.
For an additional $5, the landlord also can get access to a credit report, a credit score and a detailed rental address history.
The $30 is well spent compared with the basic eviction filing fee, which is $185 in Palm Beach County.
A West Palm Beach landlord contacted recently did not conduct a background check. Now he has a tenant whose true identity is a mystery.
“My experience with landlording has not been positive,” the man said. “I am in the middle of an eviction and the person will not say who he really is.”
Dweck collects a nonrefundable application fee paid in cash before showing a property to a prospective tenant.
An application should be filled out in full as part of that process. The one Dweck developed covers such details as whether the applicant owns a vacuum cleaner, works on cars, owns a boat or personal watercraft, works at home and why he or she is moving.
‘Never be desperate’ for a tenant
Just because you’re offering a place you own for rent doesn’t mean you have to rent to the first person who comes along.
A rental applicant can be denied for such reasons as poor credit, poor personal references, poor job reference, lack of job stability, insufficient funds to move in, criminal background and too many occupants for the size of the dwelling, Dweck said.
“Never be a desperate landlord or landlady,” Dweck advises.
If the prospective tenants have been through a foreclosure or short sale, that doesn’t rule them out if their credit is otherwise OK, Dweck said.
“At the end of the day you have to make a good business decision. Do not let them tug on your heartstrings,” Dweck said.
Rill agrees that background and credit checks have to be conducted. At the same time, don’t expect a perfect credit report. It’s not uncommon to find people with credit scores below 600, Rill said.
“Most people going into a rental are not going to have an 800 credit score. There is a reason why they are renting. Some have low scores because they just lost their house,” Rill said.
Rill said he never checks with the applicant’s most recent landlord.
“If they had a problem, the previous landlord would say anything to get rid of them. I will go to the previous, previous landlord,” Rill said.
Rill advises thoroughly reading the Florida Landlord Tenant Law, Florida Statutes Chapter 83 and giving a copy to the tenant. It states what the landlord’s responsibilities are, such as complying with health and housing codes, and the tenant’s, which include keeping the dwelling clean and sanitary.
Understanding the law can help avoid disputes. For example, the law states that if a deposit is nonrefundable, that should be noted in the rental agreement. The statute also states that the landlord has the right to enter the property at any time in case of an emergency and under other circumstances, such as for repairs, with 12 hours’ notice.
Lawyer review of lease form advised
A written lease is essential. Standard leases are available for free at sites such as www.mrlandlord.com or can be purchased at office supply stores. Rill recommends having an attorney review the lease form you select and modify it specifically for your property.
Of course, leases cover such basics as the term of the lease, when the rent is due and how much the rent is. But they also should include sections on policies about late rent, security deposits and how many people are allowed to live on the premises and that the premises are for residential purposes only.
The lease needs to state what might seem obvious. Many landlords err by not spelling out everything. If you don’t allow pets, don’t just say, “No pets.” State that no pets of any kind are allowed, including visiting pets. Or one day you will knock on your tenant’s door to find her holding a ferret, as one West Palm Beach landlady did.
Don’t just state that parking is provided. Be specific. For example, the lease Dweck created states that the tenant must park in his or her assigned space.
Don’t simply state that the premises must be left clean and undamaged in order for the tenant to receive his damage deposit back after he moves out. Dweck’s lease requires tenants to comply with a number of conditions, such as having the carpet professionally cleaned and cleaning the entire home, including the range, oven, refrigerator, bathrooms, closets, cabinets, windows, carpet and balcony, etc.
‘Professional tenants’
No matter how ironclad the lease is, what some experts call “professional tenants” do exist. These are people who move in and never pay rent. They know that it often takes awhile for an eviction to be carried out.
“Anything is only as good as the tenant’s word. They can still walk out on you,” said a West Palm Beach landlord. “I went to court on an eviction. The guy said, ‘Yes, I owe the money.’ The judge said I did not properly file the three-day notice. The name and address were supposed to be on the bottom right-hand side. It was at the top on my letterhead. It cost me a couple thousand and the guy owed me four grand. I never got paid.”
Landlording is a business, and experts say it’s not for the softhearted.
When rent is past due, Florida law requires landlords to give tenants three days’ notice that they must pay the rent or move. If the rent is not paid after three days, excluding weekends and legal holidays, then the landlord can begin legal action to evict the tenant.
“You have to be on top of it. The stories can get ridiculous. I keep a three-day notice act in my car. I have had people tell me they will not pay the rent because they are buying Christmas presents,” Rill said.
Despite the challenges, people like Alberto Rabadan, a Jupiter real estate broker who owns a 14-unit apartment building in Miami, say they want to expand their investment holdings.
Rabadan was among 20 or so people who attended a real estate investment course that Dweck recently conducted.
“The property values have gotten to a point where it is feasible to be a landlord. I am looking for a bread-and-butter property. Everybody needs a place to live. I want to provide affordable, clean housing,” Rabadan said.
© 2011 The Palm Beach Post (West Palm Beach, Fla.), Susan Salisbury. Distributed by MCT Information Services
December 01, 2011 / Avondale, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Florida’s real estate market is showing signs of recovery, and Traditions Realty can help you get in on the action. Sales of existing homes and condominiums have remained on the rise throughout the month of October, showing major gains over the past year. With increasing sales and home prices, the market is currently ideal for those looking to invest in Jacksonville real estate.
Whether you are entering the world of real estate for the first time or looking to invest in more Florida real estate, now is a great time to pursue your dream. Traditions offers a full line of real estate services, and our realtors are experienced and knowledgeable about properties in the area as well as Jacksonville homes for rent. Take advantage of our expertise to turn your Jacksonville real estate fantasy into a reality. Fla.’s home, condo sales higher in Oct. Read more below.
ORLANDO, Fla. – Nov. 21, 2011 – Florida’s existing home and existing condo sales continued to show gains in October, according to the latest housing data released by Florida Realtors®. Existing home sales increased 13 percent last month with a total of 13,755 homes sold statewide compared to 12,145 homes sold in October 2010, according to Florida Realtors.
“Statewide, both sales and prices are above where they were this time last year,” noted Florida Realtors Chief Economist Dr. John Tuccillo. “The monthly median prices have ticked down slightly for the past few months, but the overall trend continues to show gains year-over-year.
“These numbers, combined with reports from Realtors throughout the state, indicate that we’re seeing strong interest in purchasing Florida real estate from smart investors who are taking advantage of the current favorable market conditions,” Tuccillo said. “These folks tend to have a long-term outlook and plan to hold onto their property purchases for a while.”
Seventeen of Florida’s metropolitan statistical areas (MSAs) reported higher existing home sales in October; 12 MSAs had higher existing condo sales.
The statewide median sales price for existing homes last month was $131,200; a year ago, it was $136,600 for a decrease of 4 percent. According to analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
The national median sales price for existing single-family homes in September 2011 was $165,600, down 3.9 percent from a year ago, according to NAR. In Massachusetts, the September statewide median resales price was $294,950; in California, it was $287,440; in Maryland, it was $228,879; and in New York, it was $217,600.
In Florida’s year-to-year comparison for condos, 6,132 units sold statewide in October, a 12 percent increase over the 5,473 units sold in October 2010. The statewide existing condo median sales price last month was $87,800; a year earlier, it was $80,500 for a 9 percent gain. The national median existing condo sales price in September was $163,800, according to NAR.
“The latest unemployment figures indicate that Florida’s jobs outlook is improving, mortgage rates remain at historical lows and buyers are able to consider a variety of housing options at affordable prices in communities across the state,” said 2011 Florida Realtors President Patricia Fitzgerald, manager/broker-associate with Illustrated Properties in Hobe Sound and Mariner Sands Country Club in Stuart. “This is a great time to consult a local Realtor® about homeownership opportunities in your local housing market.”
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.07 percent in October, down from the 4.23 percent average during the same month a year earlier. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.
Related: NAR: Oct. existing home sales rise, unsold inventory declines
© 2011 Florida Realtors®
September 01, 2011 / Avondale, Featured Properties, Murray Hill, Open Houses, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Despite signs of a national economy that is not quite in the clear, Jacksonville’s rental housing market is going strong. Nationally, the rental vacancy rate has declined in the second half of this year. A lack of confidence in the housing market is causing those looking for homes to consider rental housing instead of buying homes. Whether you are currently a Jacksonville real estate owner or are looking to buy real estate in Jacksonville, Traditions Realty can help you to take advantage of this situation.
Traditions is your source for both homes for sale and homes for rent in Jacksonville. Interest rates are currently low, and it is a great time to buy a home.
If you are in the market, we will work with you to find your dream home. We can also help list your home for rent or find the rental housing property that is just right for you. Read more below.
Fannie: Dark clouds loom but no recession
WASHINGTON – Aug. 23, 2011 – The economy was hit by a barrage of disappointing news during the last month, which led to a downgrade in the overall macro economic forecast released today by Fannie Mae’s Economics & Mortgage Market Analysis Group.
While the August 2011 Economic Outlook does not forecast a double dip recession, it finds that the chance of a double-dip recession is roughly equivalent to a coin toss. For all of 2011, economic growth is expected to downshift to 1.4 percent from 3.1 percent in 2010. Growth is expected to pick up in 2012, but only to about 2.0 percent, compared to the 3.1 percent projected in the July forecast.
“Key factors … have revealed that we have a bigger hole to dig out of, which explains the consumer angst over the lack of employment growth,” says Fannie Mae Chief Economist Doug Duncan. “Moreover, European financial market and fiscal policy turmoil, coupled with the U.S. debt ceiling debate, have hit on consumer confidence, which is at recessionary levels.”
Duncan says Americans are clearly worried about global, big-picture concerns.
“Housing has moved into second position behind general economic concerns among consumers, which is demonstrated in our National Housing Survey results,” Duncan says. “Our July data shows that 70 percent of Americans think the economy is on the wrong track, up from 60 percent a year ago. In turn, despite historically low interest rates, consumers are still saying they don’t see this as a good time to go out and borrow money to buy a house.”
Housing activity is expected to weaken along with the overall economy due to a renewed decline in business and consumer confidence, and a weaker jobs forecast.
One exception is the rental housing market. The rental vacancy rate (the share of rental housing that is vacant and for rent) plunged from 9.7 percent to 9.2 percent in the second quarter of 2011, and is now at its lowest rate in nine years. A lower rate of homeownership suggests that a rising share of households have gone from owning to renting.
© 2011 Florida Realtors®
August 11, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
The Pentagon Federal Credit Union Foundation’s Dream Makers program is helping military members to achieve their goals of home ownership. It is offering $5,000 grants for military real estate buyers to put toward closing costs and down payments. The program is open to active service members and veterans who are planning on buying a home for the first time, and it is the perfect opportunity to buy Jacksonville real estate. Traditions Realty can help Jacksonville military real estate buyers to make the most of the grants they receive and to find their dream homes.
At Traditions, we understand that a career in the military may mean a lot of time spent away from home, but that should not prevent you from becoming a Jacksonville real estate owner. Instead, you can make a wise investment that can generate income. We make listing homes for rent in Jacksonville easy. Take advantage of the Dream Makers’ grant for military real estate buyers and make your Jacksonville real estate dream a reality. Read more below.
New grant for military first-time home buyers
WASHINGTON – July 27, 2011 – A new program offers financial assistance to first-time homebuyers who are veterans or active-duty military members. The Pentagon Federal Credit Union Foundation, a nonprofit national organization, offers the program through its Dream Makers program.
Active duty personnel, veterans, retired members of the military and employees of the U.S. Department of Defense and the Department of Homeland Security may be eligible for a grant up to $5,000 to use toward downpayments and closing costs if buying their first home. The grants can be applied to a mortgage issued by any financial institution.
“Members of the military often put off buying a home early in their careers because they’re moving around the country a lot,” says Kate Kohler, chief operating officer for the PenFed Foundation. “We want to make sure they have resources to add immediate equity into their home when they decide to buy.”
Requirements:
Military affiliation – (active duty, reserve, National Guard or veteran) – a Department of Defense employee or a Department of Homeland Security employee.
First-time homebuyer or not owned a home for the last three years; or a home has been lost through divorce or disaster.
Gross household income, including allowances, used to qualify for a mortgage loan is a maximum of $55,000 per year, or 80% of a community’s median income based on family size.
To view eligibility requirements, visit www.pentagonfoundation.org/dreammakers.
Source: “Veterans and Active Duty Can Get Financial Help When Buying Their First Home,” Pentagon Federal Credit Union Foundation (July 25, 2011)
© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688
June 01, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
If you have been thinking more seriously about investing in Jacksonville property lately, you are not alone. In Florida and around the country, people are gaining confidence in the economy and the housing market. A recent survey by Fannie Mae shows that although still cautious in taking on new financial responsibilities, many Americans view real estate as a wise investment.
Investing in Jacksonville real estate may be the ideal option for you if you are hesitant to trust stocks or other investments. Associates at Traditions Realty are here to be your partners in everything having to do with Jacksonville real estate. Whether you are considering investing in Jacksonville property, looking to put your new investment up for rent or seeking homes to rent in Jacksonville, get in touch with Traditions to make the process a pleasant one. Read more below.
Housing survey: Uptick in consumer attitudes
WASHINGTON – May 11, 2011 – Fannie Mae’s latest national housing survey finds that Americans expressed more cautious optimism during the first quarter of 2011 than in the fourth quarter of 2010, but they continue to lack confidence in the overall strength of the housing market and economic recovery.
The First Quarter 2011 Fannie Mae National Housing Survey polled homeowners and renters between January 2011 and March 2011. Findings were compared to similar surveys conducted throughout 2010 and December 2003.
The survey found that Americans’ newfound optimism about home prices, the economy and personal finances is balanced by concerns about rising household expenses.
Despite consumer caution, however, 57 percent of Americans still believe that buying a home has a lot of potential as an investment, and rank homeownership higher than other investments, such as buying stocks and putting money into an IRA or 401(k) plan.
“Uncertainty regarding the improving labor market, expectations of little home price and interest rate movement, and rising household expenses has left consumers feeling less financially secure and translates into weak mortgage demand,” says Doug Duncan, vice president and chief economist of Fannie Mae. “While we have seen indications of improving economic activity in recent months – especially the strengthening of private sector employment – consumers’ attitudes improved only marginally, and in some areas not at all, from a year ago, reflecting the continued unevenness and uncertainty of this recovery.”
Survey results
• 33% of Americans believe the economy is on the right track, up four percentage points from the fourth quarter of 2010 but virtually unchanged from January 2010 (31%).
• 42% of respondents expect their personal finances to improve over the next year (up by 2 percentage points from the fourth quarter of 2010), compared with 44% in January 2010.
• 40% say that current monthly household expenses are significantly higher than twelve months ago, up from 34% in the previous quarter and 31% in January 2010.
• While the number of Americans who perceive homeownership as a safe investment has been declining (from 83% in 2003 to 66% in first quarter of 2011), 57% still believe that buying a home has a lot of potential as an investment.
• Nearly twice as many underwater borrowers (27%) think it’s okay to walk away from a mortgage if they face financial distress than in January 2010.
• 44% of homeowners believe that the value of their home today is worth 20% or more than what they originally paid for it, declining from 46% in June 2010 and 51% in January 2010.
• 30% expect home prices to strengthen over the next year, up four percentage points from the fourth quarter of 2010 but virtually unchanged from a year ago.
• 59% of Generation Y Americans (ages 18-34) expect their personal financial situation to improve over the next year, compared to 49% among Generation X (ages 35-44) and 37% among baby boomers (ages 45-64).
• Fewer African-Americans think the economy is on the right track (44% in the first quarter of 2011 versus 51% in the previous quarter), and they are less optimistic about their personal finances (61% expect their finances to get better over the next year compared to 67% in the fourth quarter of 2010).
• Only 13% of adults age 65-plus think it will be easier for the next generation to purchase a home than it was for them, compared with 28% of Generation Y Americans.
• Nearly one in four (23%) mortgage borrowers say they are underwater, compared with 30% in January 2010.
• Only 31% of underwater borrowers think they have sufficient savings (compared to 42% in June 2010, and 43% of all mortgage borrowers).
• 46% of underwater borrowers say they are stressed about their ability to make payments on their debt (versus 35% in June 2010, and 33% of all mortgage borrowers).
© 2011 Florida Realtors®
April 05, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
In 51 of the largest cities in the US, the college educated 20-to-30 year old population has increase 26% in the urban areas of those cities. What does that mean for Jacksonville FL? With one of the largest historic areas in the US, the demand for homes for sale in the Riverside, Avondale, Springfield and San Marco areas has grown for this age group also. Within minutes of downtown, these neighborhoods are now offering homes priced for the first time home owner.
Located in 5 Points of Riverside, Traditions Realty’s assoicates know these neighborhoods. Meet with an assoicate today and explore the homes for sale and rent in these urban historic district areas. Read more below.
Young and educated show preference for urban living
WASHINGTON – April 1, 2011 – Educated 20- and 30-somethings are flocking to live downtown in the USA’s largest cities – even urban centers that are losing population.
In more than two-thirds of the nation’s 51 largest cities, the young, college-educated population in the past decade grew twice as fast within three miles of the urban center as in the rest of the metropolitan area – up an average 26 percent compared with 13 percent in other parts.
Even in Detroit, where the population shrank by 25 percent since 2000, downtown added 2,000 young and educated residents during that time, up 59 percent, according to analysis of Census data by Impresa Inc., an economic consulting firm.
“This is a real glimmer of hope,” says Carol Coletta, head of CEOs for Cities, a non-profit consortium of city leaders that commissioned the research. “Clearly, the next generation of Americans is looking for different kinds of lifestyles – walkable, art, culture, entertainment.”
In Cleveland, which lost 17 percent of its population, downtown added 1,300 college-educated people ages 25 to 34, up 49 percent.
“It tells us we’ve been on the right track,” says David Egner, president and CEO of Detroit’s Hudson-Webber Foundation. Three anchor institutions – Wayne State University, Henry Ford Health System, Detroit Medical Center – recently launched “15 by 15,” a campaign to bring 15,000 young, educated people to the downtown area by 2015.
Among the lures are cash incentives: a $25,000 forgivable loan to buy (need to stay at least five years) downtown or $3,500 on a two-year lease.
Preference for urban living among young adults – especially the well-educated – has increased sharply, data show:
• In 2000, young adults with a four-year degree were about 61 percent more likely to live in close-in urban neighborhoods than their less-educated counterparts. Now, they are about 94 percent more likely.
• In five metropolitan areas – Boston, Chicago, New York, San Francisco, Washington – about two-thirds of young adults who live in the city center have at least a four-year college degree. Less than a third of the nation’s 25- to 34-year-olds do.
“This is no longer anecdotal,” Coletta says. “Every metro area has good suburbs, but if you don’t have a strong downtown and close-in neighborhoods, then you’re not offering a choice that many of them are seeking. Offering that choice is a real competitive advantage for cities.”
© Copyright 2011 USA TODAY, a division of Gannett Co. Inc., Haya El Nasser.
February 28, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco, Uncategorized / Author: beth / Comments: (0)
For both January and February of 2011, Jacksonville real estate buyers and sellers have shown greater confidence in Florida’s economy. Floridians have seen an increase in wages and a strong stock market and have demonstrated optimism in almost all aspects of the economy. A survey conducted by the University of Florida shows that the purchase of large items is the area Floridians are most optimistic about. This is great news for real estate in Jacksonville.
Traditions Realty can help you take advantage of this situation. While personal finances are improving for area residents, prices on homes are still low. Let us be your partner in your search for Jacksonville real estate. Whether you are looking for homes to rent or buy, Traditions Realty will provide you with the tools, support, and information you need. Read more below.
February 07, 2011 / Avondale, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
Long viewed as a major benefit of home ownership, tax deductions could lead to substantial savings. The mortgage interest deduction, deductible home buying expenses, and property tax deduction may qualify you for a larger refund during tax season. With the lower purchase prices for homes and condos for sale in Jacksonville Florida, buying a home in today’s market makes sense. Read more below.
Home Ownership Offers Plenty of Tax Benefits
While renting offers zero tax breaks, buying a home offers several tax benefits that can make homeownership more affordable. Real estate professionals need to be careful in providing detailed tax advice to clients to avoid lawsuits, but you can ensure clients have the information they need to understand the all of the tax benefits of home ownership.
The following is a few of the tax benefits to home ownership, according to Stephen Fishman, an author and lawyer who specializes in small business, tax and intellectual property law.
▪ Home mortgage interest deduction: Home owners can take an itemized deduction on interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home. This deduction could potentially reduce the cost of borrowing by one-third or more.
▪ Property tax deduction: Home owners can deduct from their federal income taxes the state and local property taxes that you pay on the home.
▪ Deductible home buying expenses: Several closing costs in a home purchase are also deductible, such as loan origination fees (points), prorated interest on a new loan, and prorated property taxes paid at settlement.
▪ $250,000/$500,000 home-sale exclusion: Home owners who have lived in their home for two of the prior five years prior to its sale do not have to pay income tax on the majority of their profit —$250,000 for single home owners and $500,000 for married homeowners who file jointly.
▪ 14 days of free rental income: Home owners can rent the home up to 14 days during the year and pay no tax at all on the rental income.
Source: “The Tax Benefits of Homeownership,” Inman News (Feb. 4, 2011)
February 06, 2011 / Avondale, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
A fourth quarter UF Survey of Emerging Market Conditions found increased optimism for sales of new single family homes, condominiums and capital avalibility The defeat of Amendment 4, the amendment calling for a referendum for any change to local government land use plans, help to spur the growth of optimism. Another factor influencing the growth was the election of a new governor and his goals to push for more business friendly state policies. Respondents predicted rent increases and a raise in the occupancy rates in both residential and commercial properties. What does this mean for homes and condos for rent and sale in Jacksonville, Florida? Read more below.
UF survey: Florida’s real estate outlook perks up in several areas
GAINESVILLE, Fla. – Feb. 2, 2011 – Optimism has increased slowly but steadily in Florida real estate markets through the fourth quarter of 2010, a new University of Florida survey finds.
The fourth quarter Survey of Emerging Market Conditions found improvement in several key categories, including the outlook for sales in new single-family homes and condominiums, office occupancy, retail occupancy, land investment and capital availability.
Much of the optimism derives from politics with the defeat last fall of Amendment 4, a proposed constitutional amendment that would have required a referendum for all changes to local government comprehensive land-use plans, said Timothy Becker, director of UF’s Bergstrom Center for Real Estate Studies. The conclusion of mid-term elections also eased respondents’ uncertainty as it provided a clearer picture of the future.
“The state welcomed a new governor who has promised to make Florida a more business-friendly state,” Becker said. “If he can succeed on his goals, respondents believe it will have a positive impact on the real estate market. Any help in attracting new business to move or form in the state will no doubt have a positive impact on job growth.”
Survey respondents’ expectations for occupancy and rent increased across every property type. The investment outlook rose in a majority of the property types, and the statewide outlook was the highest since the survey’s inception in 2006. Additionally, private capital is abundant as investors seek the few good products on the market. Overall, the market appears to be improving and will continue to improve at a slow pace over the next year.
Despite the positive outlooks in many asset classes, respondents’ optimism is tempered by troublesome economic factors, most notably Florida’s high unemployment rate of 12 percent. Respondents also relayed fears over federal, state and local budget issues.
“Local revenues continue to decline as property values decline, placing a tremendous burden on local budgets,” Becker said. “This will require tough decisions by local officials.”
The outlook for single-family and condominium sales increased slightly in the fourth quarter, but Becker said home builders continue to have a negative outlook because financing is difficult to obtain and lower prices in the foreclosure and short-sale market take potential customers away from the new housing market. Unexpectedly, however, respondents’ outlook for investment in residential development increased for both single-family homes and condominiums. Becker said the low cost of fully developed lots provides incentive for investors and developers.
Expectations for office and retail occupancy continued to improve. Occupancy expectations in the office sector increased, and the outlook for rental rates increased slightly but is expected to continue lagging inflation. In the retail sector, occupancy expectations improved for all property types.
Becker said respondents believe occupancy will increase in neighborhood centers and large retail centers. Accordingly, the investment outlook in retail increased for neighborhood centers while declining for the remaining property types.
Land investment and capital availability also rose this quarter. More respondents believe land is beginning to be priced at levels that support longer-term investment, despite the fact that lack of financing for land purchases continues to be a concern. The optimistic outlook for capital is due in large part to respondents’ belief that future availability will increase.
“Respondents believe there is a need to add additional apartment units based on the fundamentals and expect development financing to be available for that sector,” Becker said. “Private equity continues to be plentiful for quality core assets and valued-add assets.”
Expectations for apartment occupancy and the industrial sector were mostly stable.
© 2011 Florida Realtors®
January 25, 2011 / Avondale, Featured Properties, Murray Hill, Ortega, Press Releases, Real Estate News, Riverside, San Marco / Author: beth / Comments: (0)
With the Consumer Confidence Index rising, the future business conditions of the nation are far from the level that signals a well balanced attitude from it’s citizens. The good news is that it is at it’s highest in 8 months, 60.6. With unemployment being one of the leading factors, many economists expect the nation will create twice as many jobs this year as it did last year. People who still have jobs are not as worried about their future employment as they might have been a year ago, and they are showing that confidence at the cash registers. How will this effect real estate in Jacksonville Fl. and real estate in general? If the trend continues, it will lead to greater spending and deceasing the number of homes for sale in Jacksonville Fl.
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Consumer Confidence Index hits 8-month high
WASHINGTON (AP) – Jan. 25, 2011 – The Consumer Confidence Index rose in January to its highest level in eight months with Americans growing a little more confident about the job market and business conditions.
The Conference Board said Tuesday its Consumer Confidence Index climbed to 60.6 this month, up from 53.3 in December. While that reading was better than economists had expected, confidence is still far from the 90 level that signals a healthy consumer mindset.
The January figure was the highest since last May’s 62.7. At that time, consumer attitudes were improving as economic growth seemed to be taking off. However, the economy stalled in the summer, and so did confidence.
Confidence has been depressed by unemployment that surged during the country’s worst recession since the 1930s and has stayed stubbornly high even though the downturn ended in June 2009. Confidence has not been above 90 since the recession began in December 2007.
However, moods may be lifting a bit. A new survey from the National Association for Business Economics reported Monday that the number of firms expressing positive hiring plans was at its highest level in 12 years.
In the Conference Board survey, the percentage of people surveyed who felt jobs were hard to get fell slightly to 43.4 percent from 46 percent in December. The share who expected to see more jobs six months from now rose to 16 percent from 14.2 percent.
While confidence has stayed weak since the recession ended in summer 2009, consumer spending has been picking up. During the 2010 holiday shopping season, sales increased at the fastest rate in six years.
Economists are hoping that consumer confidence will keep improving in 2011 as the economy begins to show greater signs of strength and unemployment declines.
The jobless rate fell to 9.4 percent in December from 9.8 percent in November, but the economy added only 103,000 jobs. Employers added 1.1 million jobs for all of 2010, or about 94,000 a month. The nation still has 7.2 million fewer jobs than it did in December 2007, when the recession began.
But many economists expect the nation will create twice as many jobs this year as it did last year. They note that people who still have jobs are not as worried about losing them as they might have been a year ago, and that people are spending more.
Economists expect that a tax cut which took effect in January – reducing the amount taken out of workers’ paychecks to pay for Social Security – will also lead to greater spending in the new year.
Copyright © 2011 The Associated Press, Martin Crutsinger, AP economics writer.